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69.—(1) Where by virtue of[F1 section 132 of the Administration Act] a direction is given that the sums which are the additional components in the rates of long-term benefits are to be increased by a specified percentage, the Department of FinanceF2 shall by order provide that the annual rate of an official pension may, if a qualifying condition is satisfied or the pension is a[F3 derivative or substituted pension or a relevant injury pension], be increased in respect of any period beginning on or after the date on which the direction takes effect—
(a)if the pension began before the beginning of the base period for that direction, by the same percentage as that specified in the direction;
(b)if the pension began during the base period, by that percentage multiplied by A/B where A is the number of complete months in the period between the beginning of the pension and the end of the base period and B is the number of complete months in the base period.
(2) Where an order is made under this Article in consequence of any such direction as aforesaid the order shall, in addition to the provision required by paragraph (1), authorise the payment of an increase in respect of any lump sum that becomes payable during the base period for that direction, being an increase equal to the percentage specified in the direction multiplied by A/B where—
(a)A is the number of complete months in the period between the beginning date for the lump sum (or, if later, the date from which it was last authorised to be increased by an order under this Article) and the date on which it becomes payable; and
(b)B is the number of complete months in that base period.
(3) In the case of the first order made under this Article in consequence of any such direction as aforesaid, paragraph (1) shall have effect as if the increase required to be authorised in the case of any pension (whether beginning before or during the base period) were an increase equal to the percentage specified in the direction multiplied by A/B where—
(a)A is the number of complete months in the period between the beginning of the pension (or, if later, the date from which it was last authorised to be increased by an order under section 2 of the Pensions (Increase) Act (Northern Ireland) 1971 [1971 c.35] ( “the Act of 1971”)) and the end of the base period for that direction; and
(b)B is the number of complete months in that base period.
(4) In the case of the first order so made under this Article, paragraph (2) shall have effect as if—
(a)for the reference to any lump sum that becomes payable during the base period there were substituted a reference to any lump sum that becomes or has become payable before the end of the base period but after the date from which official pensions were last increased by an order under section 2 of the Act of 1971; and
(b)the reference in sub-paragraph ( a) of the paragraph to the date from which the lump sum was last authorised to be increased were a reference to the date specified in sub-paragraph ( a) of this paragraph.
(5) The increases in the rate of a pension that may be provided for by an order under this Article are to be calculated by reference to the basic rate of the pension as authorised to be increased by section 1 of the Act of 1971 or by any order under section 2 of that Act or this Article; but where—
(b)entitlement to that guaranteed minimum pension arises from an employment from which (either directly or by virtue of the payment of a transfer creditF6. . . ) entitlement to the official pension also arises;
the amount by reference] to which any increase authorised by that or any subsequent order is to be calculated shall be reduced by an amount equal to the rate of the guaranteed minimum pension.
[F3(5ZA) In the application of paragraph (5) in relation to a widow's or widower's pension in a case where the pensioner becomes entitled on the death of the deceased spouse to such a guaranteed minimum pension as is there mentioned—
(a)the pensioner shall be treated as having been entitled to that guaranteed minimum pension at all times during the period beginning with the date on which the deceased spouse became entitled to a guaranteed minimum pension and ending with the date of the death;
(b)the rate of the guaranteed minimum pension to which the pensioner is treated as so entitled at any time during that period shall be taken to be one half of the rate of the deceased spouse's guaranteed minimum pension at that time; and
(c)the amount by reference to which any increase in the widow's or widower's pension is to be calculated shall, subject to any directions under Article 69A (whether made before or after the coming into operation of this paragraph), be accordingly reduced under that paragraph by an amount equal to the rate, as determined under sub‐paragraph ( b ), of the guaranteed minimum pension to which the pensioner is treated as entitled;
but this paragraph does not apply to a widow's or widower's pension in respect of any service of the deceased spouse if the deceased spouse's pension in respect of that service became payable before the coming into operation of this paragraph.]
[F7(5A) Nothing in[F5 section 106(2) or (3) of, or paragraph 10 of Schedule 5 to, the Pension Schemes (Northern Ireland) Act 1993] authorises any deduction from an increase in the rate of an offical pension under this Article.]
(6) Any order under this Article shall be laid before the Assembly after being made.
(7) In this Article—
“base period”, in relation to any such direction as is mentioned in paragraph (1), means the period ending with the coming into force of that direction and beginning with the coming into force of the last previous such direction or, if there was none, with [F4 13th November 1978 (date of the relevant order under section 120 of the principal Act, increasing rates of benefit)];
“beginning date”, in relation to a lump sum, shall be construed in accordance with sections 8(2) and 9(2)( a) of the Act of 1971;
[F5“employment” has the same meaning as in section 176(1) of the Pension Schemes (Northern Ireland) Act 1993]
“lump sum” includes an instalment of a lump sum;
[F3“widower's pension” means a pension payable in respect of the services of the pensioner's deceased wife;]
F9[(8) Where, for the purposes of this Article, it is necessary to calculate the number of complete months in any period an incomplete month shall be treated as a complete month if it consists of at least 16 days.]
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